Are the DHP Savings From Utilization Management Achievable ?

This annotated briefing examines if Defense Health Program (DHP) savings from Utilization Management (UM) are achievable. We examined the effects of reductitions in the DHP budget associated with efficiencies arising from practicing UM at military medical facilities and clinics. We looked at key measures of efficiency and cost between DHP and the civilian health care market. We also determined how the system would respond to cuts in the budget due to UM efficiencies. Finally, we created a mathematical model that captured the way that money could be saved by practicing UM within DHP. We found that the mandated UM savings are achievable; however, the DHP faces several potentially difficult problems that will make it hard to achieve the intended savings.